Investment Rating - The report assigns an "Accumulate" rating to the company with a current price of 7.37 CNY and a fair value of 8.62 CNY [4]. Core Views - The company is a semiconductor manufacturing and engineering service provider, expected to benefit from advantageous geographical positioning and resource allocation from the group [2]. - The company has shown stable profitability, with a revenue CAGR of 23.52% and a net profit CAGR of 4.09% from 2019 to 2023 [9]. - The company is well-positioned to capitalize on the growth of the semiconductor industry, particularly in cleanroom and advanced packaging services [9]. Financial Summary - Revenue for 2022 was 35.195 billion CNY, with a growth rate of 44.9%. Forecasted revenues for 2023 and 2024 are 39.377 billion CNY and 39.612 billion CNY, respectively, indicating a growth rate of 11.9% and 0.6% [3]. - EBITDA for 2022 was 565 million CNY, with projections of 1.785 billion CNY for 2023 and 1.689 billion CNY for 2024 [3]. - The company reported a net profit of 730 million CNY in 2023, recovering from a loss of 743 million CNY in 2022 [3]. - The earnings per share (EPS) is projected to be 0.35 CNY for 2023 and 0.36 CNY for 2024 [3]. - The price-to-earnings (P/E) ratio is expected to be 21.06 for 2023 and 21.19 for 2024 [3]. - Return on equity (ROE) is projected to be 9.2% in 2023, declining slightly to 8.3% by 2026 [3]. - The EV/EBITDA ratio is forecasted to decrease from 7.39 in 2023 to 5.63 in 2026 [3]. Business Overview - The company operates in the advanced manufacturing engineering service sector, focusing on semiconductor packaging and testing, as well as engineering services for high-tech industries [17]. - The subsidiary, Eleven Technology, is a leader in semiconductor engineering design and has a strong market presence in cleanroom services, benefiting from the growth in the electronics sector [48]. - The company has established a comprehensive engineering service system, covering various sectors including electronics, biomedicine, and renewable energy [48]. Market Position - The cleanroom market is projected to reach 115.7 billion CNY by 2025, driven by increasing investments in the electronics industry [9]. - The company has a strategic partnership with Hynix, enhancing its capabilities in advanced packaging and testing [9]. - The semiconductor market in China is expected to grow to 211.5 billion USD by 2025, with a significant increase in the integrated circuit packaging and testing market [9].